Australian home values rise the most in 7 years on low rates

Sydney

AUSTRALIAN house values increased at the fastest pace in seven years in 2016, as record-low interest rates helped fuel demand for property despite warnings such price increases may be unsustainable.

The average dwelling value in the nation's eight state and mainland territory capitals rose 10.9 per cent last year, compared to 7.8 per cent in 2015, data from CoreLogic Inc released on Tuesday showed. That's the biggest increase since 2009.